Hong Kong has emerged as the world’s best-prepared jurisdiction for widespread cryptocurrency adoption in 2023 for the second consecutive year. A comprehensive study assessing factors like the presence of crypto infrastructure, accessibility, legality, and overall reach has unveiled that Hong Kong secured the top spot with a Crypto Readiness Score (CRS) of 8.36.
Hong Kong faced stiff competition from the United States and Switzerland, which maintained their positions in the top three. However, the United States slipped to third place, witnessing a 6.5% decline in its CRS score from 7.7 in 2022 to 7.25 in 2023. Switzerland, on the other hand, saw its CRS score surge by over 9% from 7.5 to 8.18, securing the second rank globally.
The CRS takes into account several vital factors contributing to a country’s crypto readiness, including the presence of crypto ATMs, favorable regulations, a thriving startup culture, and a fair tax regime. Slovenia, Canada, and Australia also managed to break into the top 10 rankings in 2023.
When it comes to individual interest in cryptocurrency, the Netherlands stood out, showing the highest interest per person. The United States boasts the largest network of Bitcoin ATMs, but Hong Kong outperforms in terms of crypto ATMs per square foot due to its smaller landmass.
Crypto and blockchain hubs
Estonia, Singapore, and Switzerland have emerged as bustling hubs for crypto and blockchain companies, fostering innovation and adoption. Taxes play a pivotal role in determining a country’s crypto adoption potential, with 12 nations imposing a 0% tax rate on crypto for individuals. Germany, Panama, and Portugal are among the countries adopting this favorable tax approach, positioning themselves for future growth.
Crypto readiness in the US vs. Hong Kong
Within the United States, New York claimed the title of the most crypto-ready state, boasting a CRS of 9.80. This achievement can be attributed to the state’s numerous crypto-related legislations and a thriving ecosystem of crypto and blockchain businesses.
India’s remarkable crypto adoption
A recent Chainalysis report revealed that India leads the world in crypto adoption in 2023. Lower middle-income (LMI) nations, including Nigeria and Thailand, secured the second and third positions in the report, demonstrating the rapid expansion of the crypto market in emerging economies.
India’s leadership in grassroots crypto adoption is complemented by its position as the second-largest crypto market by raw estimated transaction volume globally. This remarkable growth is a testament to the increasing acceptance and integration of cryptocurrencies into the country’s financial landscape.
